Canadian Banks Picking Up the Slack in US Credit Card ABS

Canadian banks are increasingly crossing the border to fund their credit card programs, taking advantage of lower borrowing costs in the much larger U.S. market.

U.S. dollar-denominated issuance by Canadian card companies has been rising for three years, and shows no signs of stopping. In 2016, there were 15 deals from five separate programs totaling $7.33 billion, according to Moody’s Investors Service. That was up from $2.33 billion in 2015 and $1.0 billion in 2014.

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